Article 10 Limitations on Redemption of Capital Instruments Issued by Mutuals, Savings Institutions, Co-operatives Societies and Similar Institutions for the Purpose of Article 29(2)(b) and Article 78(3) of the CRR
1.
An institution may issue Common Equity Tier 1 instruments with a possibility to redeem only where such redemption is permitted under the applicable law of the United Kingdom (or any part of it), or of a third country.
- 01/01/2023
2.
The ability of the institution to limit the redemption under the provisions governing capital instruments as referred to in Article 29(2)(b) and 78(3) of the CRR, shall encompass both the right to defer the redemption and the right to limit the amount to be redeemed. The institution shall be able to defer the redemption or limit the amount to be redeemed for an unlimited period of time pursuant to paragraph 3.
- 01/01/2023
3.
The extent of the limitations on redemption included in the provisions governing the instruments shall be determined by the institution on the basis of the prudential situation of the institution at any time, having regard to in particular, but not limited to:
- (a) the overall financial, liquidity and solvency situation of the institution;
- (b) the amount of Common Equity Tier 1 capital, Tier 1 and total capital compared to the total risk exposure amount calculated in accordance with the requirements laid down in point (a) of Article 92(1) of the CRR, the specific own funds requirements referred to in regulation 34 of the Capital Requirements Regulations and the combined buffer requirement as defined in regulation 2(1) of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014.
[Note: This rule corresponds to Article 10 of Part 2 of Regulation (EU) No 241/2014 as it applied immediately before revocation by the PRA.]
- 01/01/2023